Buying Long Term Care Insurance: What You Need to Know

With all of the costs associated with protecting your health, the last thing you need is one more health care cost. However, because people are living longer it is becoming more necessary than ever before to carry long-term care coverage in addition to major medical insurance. On the other hand, because most people won't need this insurance until they are in their 80s, you don't want to be scared into buying long-term care insurance too early.

Knowing When to Buy Long-Term Care Insurance

Many insurance agents who offer long-term care insurance are going to start pushing it when their clients are in their 40s. The rationale behind this strategy is that when you buy the insurance early you get a better rate. For example you may pay less than $700 a year for long-term care insurance when you buy it in your 40s while you will pay several thousand dollars a year if you buy it in your 60s or 70s.

While this may sound like sound advice you need to think about how long you will be paying your premium before needing it. If you buy this insurance in your 40s you will most likely pay premiums for 40 or more years before actually needing it. By that time, costs will most likely cause your low rates to increase, reducing your savings and reducing the affordability of your insurance.

There really is no "best" time to purchase long-term care insurance. Some people need long term care insurance as early as their 40s because of serious illnesses, accidents or because of brain injuries. On the other hand, some people may never need long-term care insurance because they stay healthy until their last day of life, or because their family takes care of them. The timing for buying long-term care insurance needs to be based on your health, your family history and your resources and expectations.

Understanding Your Coverage

Before you sign on the dotted line you really need to know what your policy covers and what it does not. Many long-term care insurance policies have been criticized because of the complexity. However, recent changes and standardization of long-term care insurance policies are starting to make them easier to understand. If you don't understand a specific clause in your policy have your insurance agent explain it to you, or have the policy reviewed by your attorney. Finally, make sure that the coverage you asked for is the coverage offered by the policy you buy.

Long-Term Care Insurance

Long-term care insurance is a complex product that can protect your assets if you need extended care, however, it can also become an expensive piece of paper that you never use. In order to make sure that you get the most value for your insurance investment you will want to make sure that you buy long-term care insurance only when it makes sense to do so and you will want to make sure that you understand what your coverage includes and what it does not include.